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Would Chase be Okay with None, One, or Both of These?

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Anonymous
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Would Chase be Okay with None, One, or Both of These?

Background. Both me and my mom have a Chase Freedom. We have the same last name, but live 1000 miles apart.

1. My mom isn't into credit cards at all and uses her Freedom for as her daily driver. Even for that 1% non category spend which drives me crazy. But she has no interest in anything else. She's got a lot of UR saved up and I made her an offer which she agreed to. She transfers all her UR points to me so I get the 1.25 multiplier with my CSP. I then pay her cash at a 1:1 ratio for the points. She gets the same amount of money and I get a 25% bonus.

2. With PayPal being a Q2 category, we also agreed that I would send her $1500 via PayPal using my freedom card. She would then deposit $1500 into my bank account. She loses nothing but a few minutes of her time and I make some UR points.

Would Chase allow these two things to go through and be okay with them?
Message 1 of 7
6 REPLIES 6
Anonymous
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Re: Would Chase be Okay with None, One, or Both of These?


@Anonymous wrote:
Background. Both me and my mom have a Chase Freedom. We have the same last name, but live 1000 miles apart.

1. My mom isn't into credit cards at all and uses her Freedom for as her daily driver. Even for that 1% non category spend which drives me crazy. But she has no interest in anything else. She's got a lot of UR saved up and I made her an offer which she agreed to. She transfers all her UR points to me so I get the 1.25 multiplier with my CSP. I then pay her cash at a 1:1 ratio for the points. She gets the same amount of money and I get a 25% bonus.

2. With PayPal being a Q2 category, we also agreed that I would send her $1500 via PayPal using my freedom card. She would then deposit $1500 into my bank account. She loses nothing but a few minutes of her time and I make some UR points.

Would Chase allow these two things to go through and be okay with them?

I know using paypal for family members with some cards has caused a problem i just can't say for sure its chase.  I personally would steer clear for fear of suspected MS. 


Message 2 of 7
Anonymous
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Re: Would Chase be Okay with None, One, or Both of These?

Unless it's changed and I don't think it has, Chase's rule about transferring points to another person is that they have to a member of your household (same address).  I wouldn't risk losing points or having an account shut down to do what you are proposing.

Message 3 of 7
Anonymous
Not applicable

Re: Would Chase be Okay with None, One, or Both of These?

Both you and your mother could have your points seized and/or accounts shut down.  Just checked and this is what Chase says:

 

Combine points with other Chase cards with Ultimate Rewards

 

You can move your points, but only to another Chase card with Ultimate Rewards belonging to you, or one member of your household. If we suspect that you've engaged in fraudulent activity related to your credit card account or Ultimate Rewards, or that you've misused Ultimate Rewards in any way (for example by buying or selling points, moving or transferring points with or to an ineligible third party or account, or repeatedly opening or otherwise maintaining credit card accounts for the sole purpose of generating rewards) we may temporarily prohibit you from earning points or using points you've already earned. If we believe you've engaged in any of these acts, we'll close your credit card account and you'll lose all your points.

Message 4 of 7
MrDisco99
Valued Contributor

Re: Would Chase be Okay with None, One, or Both of These?

Chase could theoretically bite back at both of these for opposite reasons.  It could work, but I don't know if I'd be gutsy enough to poke that bear.

Message 5 of 7
Anonymous
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Re: Would Chase be Okay with None, One, or Both of These?

Dude, don't do the second one. It's basically manufactured spending and if anything all that kind of activity will do is ultimately get chase to not offer PayPal as a category. If they see you send $1500 and then you get a $1500 deposit from the same person...come on man...

I'm hoping the PayPal Cash Card (personal debit card) will allow me to use any card of my choice as the backup funding source, and that a transaction on the debit card will generate CC rewards accordingly. I'll set up a Freedom as the funding source, and hopefully I'll get 5x UR on everything I use the PayPal cash card for - so basically anything - and when it's not a category I can set up my freedom unlimited. I think it might work, but if people are gonna go around and pull off a relatively simplistic and blatant swindling of points like you propose, then any hope for my little scenario will go poof.
Message 6 of 7
longtimelurker
Epic Contributor

Re: Would Chase be Okay with None, One, or Both of These?


@Anonymous wrote:
Dude, don't do the second one. It's basically manufactured spending and if anything all that kind of activity will do is ultimately get chase to not offer PayPal as a category. If they see you send $1500 and then you get a $1500 deposit from the same person...come on man...

I'm hoping the PayPal Cash Card (personal debit card) will allow me to use any card of my choice as the backup funding source, and that a transaction on the debit card will generate CC rewards accordingly. I'll set up a Freedom as the funding source, and hopefully I'll get 5x UR on everything I use the PayPal cash card for - so basically anything - and when it's not a category I can set up my freedom unlimited. I think it might work, but if people are gonna go around and pull off a relatively simplistic and blatant swindling of points like you propose, then any hope for my little scenario will go poof.

I don't think OP was proposing quite that, if she puts the money is OPs bank account there's no reason why Chase (or Paypal) would have any visibility, unless OP banks with Chase (in which case, yes, a very bad idea).

 

I actually don't think the risk is all that big, as the Freedom rewards are capped low.   Maxing out a category (on real spending) isn''t that unusual, and so Chase wouldn't be alarmed.

 

REAL MS done properly generates huge amounts of rewards which is why banks don't like it.   On low-capped cards, it's not an issue.

 

But transferring URs to non-household members is a classic trigger for getting all your Chase cards (and Chase bank accounts) closed, and it's somewhat hard to hide.   When you sell  ariline points to a broker, they don't usually do any transfer, you give them access to your points account and they use it to get award travel for their clients.   I assume with URs you would transfer them to partner accounts as well....

 

 

Message 7 of 7
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